The invention relates to data processing methodology and apparatus for effecting an improved customized rating adjustment to transaction charges. More specifically, this invention is directed to a process and a system for rapidly and reliably applying surcharges and discounts to transaction charges in a shipping system.
This Application is one of the following two (2) related, concurrently filed, U.S. patent applications filed by the same inventors and assigned to the same assignee of this application: Ser. No. 07/887,616 for a Flexible Apparatus and Method for Applying Customized Rating Adjustments to Transaction Charges; and Ser. No. 07/888,682, for a Flexible Method for Applying Customized Rating Adjustments to Transaction Charges.
It is well known in the carrier shipping industry to distribute standardized public rates for manifest mail carrier systems. Standard public rates are available to anyone who meets the basic conditions of doing business with a carrier. Carriers typically offer several standard classes of service. Rates may be based on service level, which typically represents a time of delivery (e.g. next day delivery, second day, etc.). Standard rates may also vary by destination, zip code or zone. They may also be determined by dimension (oversize) or by packaging (such as express carriers' letters).
Prior systems relating to carrier manifest systems for handling transaction charges are discussed in U.S. Pat. Nos. 4,499,545, 4,504,915 and 4,506,330, which are assigned to the assignee of the present application and are herein incorporated by reference.
U.S. Pat. No. 4,499,545, issued Feb. 12, 1985 to Daniels, et al., relates to a method and apparatus for controlling the ability of a user of a shipping system, or similar system for computing charges, to access code which is installed in the system for computing various fees for special services. A rate screen byte is provided and access is granted or denied to particular special services in accordance with the status of corresponding bits in the byte.
U.S. Pat. No. 4,504,915, issued Mar. 12, 1985 to Daniels, et al., relates to shipping systems, or similar systems for determining charges, also. Access to rates for particular classes of service is controlled by incorporating "pseudo rate charges" in the rate memory. The "pseudo rate charge" will vector the system to the routine for indicating that access has been denied when the user attempts to access a class of service which has not been ordered and paid for.
The above two patents differ substantially from the subject invention, at least in that they are related to inventions for granting or denying access to particular functionalities of the system, i.e. rates for particular classes of service or special services, for which rates the customer has not paid, while this invention relates to applying surcharges or discounts to charges determined by the system.
U.S. Pat. No. 4,506,330, issued Mar. 19, 1985 to Dlugos, relates to a shipping system, or similar system for determining charges, which includes a customized "zip to zone" memory. In shipping systems, one parameter upon which charges are based is the "zone" which is a measure of the distance items are to be shipped. Typically, such systems will include "zip to zone" conversion software which will compute a zone value from the zip code of the destination address. In the invention of the '330 patent, the system includes a customized "zip to zone" memory for altering the computation of the charges as though the shipment were made from a different originating location. A manual switch is provided allowing a user to select either the standard or the customized "zip to zone" memory.
Applicants note that none of the above described patents in any way suggest a system which includes a memory for storing discount/surcharge data, which is automatically applied to charges computed using standard rates.
In addition to the standard rates being offered by the carrier, a carrier may wish to offer a customer or user special discounted rates for use in its shipping system. Discounted (or incentive) rates are typically offered individually to preferred customers based on conditions set by the carriers. Often the carrier may establish a series of non-standard, discount rate charts. Only one of the rate charts would be activated for any particular shipper but different tables are activated for different shippers. Generally, the carrier may select a series of parameters (e.g. weight, zone) which can be used to build a discount rate chart. Typically, these parameters bear a relationship to the parameters used in determining the standard public rates and they are often calculated in part by taking a fixed percent off or a fixed dollar amount off of the published rate.
In these cases the carrier may individually negotiate "custom" rates with the shipper. The structure for such negotiated rates will be the same as the standard public rates but the values within the structure will vary from shipper to shipper. Typically these rates are reserved for high volume, national accounts and are renegotiated every one or two years.
A type of data processing device that illustrates application of custom rates is a computerized parcel manifest system, of which well known examples are the HAWK, A2000, A10000, marketed by Pitney Bowes Inc., Stamford, Conn.
In these prior systems, after negotiations, a contract was required to detail any of the customized rate adjustments which a carrier would grant to a shipper. These systems were limited in their capacity for growth, i.e., expansion of the system with respect to the number and type of criteria, because of the direct linkage to parameters used in the rate chart. Any time the customized rate chart was to change e g., vary applicable adjustment to the rate, it required about a forty-five (45) day turnaround due to testing requirements for each and every applicable rate.
Additionally, these systems did not allow the customer or carrier to figure out the total variance (discount/surcharge cost amount) between the custom adjusted rate and the standard public rate because the rate applied from the custom adjusted rate chart already incorporated the desired adjustment to the standard rate in the "customized rate". No method existed for backing out information about what the standard public rate corresponding to the discounted rate would have been or which specific criteria were utilized as rating criteria for applying the particular discount. It is desirable for shippers to have such information about their own shipping practices. Shippers wish to analyze and compare the benefits of participating in the custom adjusted rate programs offered by particular carriers in order to optimize such participation benefits. Additionally, such information is useful to shippers for the purpose of billing back the cost of handling charges to their customers or internally to other departments within the same company (if the shipping department becomes a cost center). Some shippers may prefer to bill the customer without passing along the discount savings to which the shipper was entitled.
Prior customized rating systems existed mainly in two forms: The first type of system, as partially described above, customized rating by utilizing a customized rate chart for applying discounts (or surcharges). This customized rate chart would have incorporated within it at the appropriate locations the desired customized rate in place of the typical standard public rate.
A second type of system customized rating by permitting a customer to enter discount or surcharge fee amounts manually into the system. An example of this type of system is discussed in U.S. Pat. No. 5,072,397, also assigned to the assignee of the present invention and is herein incorporated by reference. U.S. Pat. No. 5,072,397, issued Dec. 10, 1991, to Barns-Slavin, et al., relates to a carrier management system which enables determination of charges with discounts. Applicable discounts are based upon a limited number of discount criteria as determined and entered manually by the user for the transaction. Manual entering of adjustments to the base rate proved to have very limited capability due to human error, user tampering with rates, and length of time necessary to enter numerous discount schemes for a transaction. Due to lack of integrity in a manifest generated as a result of manual input in these prior systems, the carrier was required at considerable cost to additionally audit and police the use of discounts as implemented by the user/customer. The carrier would not be inclined to treat the manifest as a billing document due to this lack of integrity. Typically auditing procedures entailed cross-reference back to a contract previously negotiated between the carrier and the shipper. Since cross-referencing required a manual look up of the negotiated customized rate, the pattern of customized rate adjustments offered by the carrier to the customer would be limited in scope in order that it would be manageable for the carrier to conduct its auditing procedures. The carrier would avoid offering numerous discount patterns to customers in efforts to ensure less cumbersome auditing procedures and to prevent auditing procedures from becoming error prone.
It is therefore an object of the present invention to provide a methodology and system whereby an authorized user can rapidly obtain accurate transaction charges reflecting any applicable customized rating adjustments.
It is a further object to provide such capability with only minor changes in presently accepted parcel manifest systems.